Segments and Geographic Area Analysis

12 Months Ended

Dec. 31, 2012

Segments and Geographic Area Analysis

15. Segments and Geographic Area Analysis

Although we provide contract drilling services with different types of offshore drilling rigs and also provide such services in many geographic locations, we have aggregated these operations into one reportable segment based on the similarity of economic characteristics due to the nature of the revenue earnings process as it relates to the offshore drilling industry, over the operating lives of our drilling rigs.

Revenues from contract drilling services by equipment-type are listed below:

	Year Ended December 31,
	2012		2011		2010
	(In thousands)
Floaters:
Ultra-Deepwater	$	902,793	$	841,565	$	718,426
Deepwater		597,694		733,037		564,315
Mid-Water		1,275,068		1,482,032		1,678,793
Total Floaters		2,775,555		3,056,634		2,961,534
Jack-ups		160,511		197,534		267,983
Other		--		145		219
Total contract drilling revenues		2,936,066		3,254,313		3,229,736
Revenues related to reimbursable expenses		50,442		68,106		93,238
Total revenues	$	2,986,508	$	3,322,419	$	3,322,974

Geographic Areas

Our drilling rigs are highly mobile and may be moved to other markets throughout the world in response to market conditions or customer needs. At December 31, 2012, our actively-marketed drilling rigs were en route to or located offshore 12 countries in addition to the United States. Revenues by geographic area are presented by attributing revenues to the individual country or areas where the services were performed.

	Year Ended December 31,
	2012		2011		2010
	(In thousands)
United States	$	173,961	$	323,381	$	635,545
International:
South America		1,427,927		1,736,798		1,308,641
Europe/Africa/Mediterranean		662,995		749,128		601,122
Australia/Asia		524,957		451,364		641,372
Mexico		196,668		61,748		136,294
		2,812,547		2,999,038		2,687,429
Total revenues	$	2,986,508	$	3,322,419	$	3,322,974

An individual international country may, from time to time, comprise a material percentage of our total contract drilling revenues from unaffiliated customers. For the years ended December 31, 2012, 2011 and 2010, individual countries that comprised 5% or more of our total contract drilling revenues from unaffiliated customers are listed below.

	Year Ended December 31,
	2012		2011		2010
Brazil		46.1%		49.4%		36.8%
United Kingdom		6.9%		4.6%		5.6%
Australia		6.7%		6.7%		10.0%
Mexico		6.6%		1.9%		4.1%
Angola		2.7%		9.6%		6.1%
Indonesia		2.4%		5.0%		1.3%

The following table presents our long-lived tangible assets by geographic location as of December 31, 2012, 2011 and 2010. A substantial portion of our assets is comprised of rigs that are mobile, and therefore asset locations at the end of the period are not necessarily indicative of the geographic distribution of the earnings generated by such assets during the periods and may vary from period to period due to the relocation of rigs. In circumstances where our drilling rigs were in transit at the end of a calendar year, they have been presented in the tables below within the geographic area in which they were expected to operate.

	December 31,
	2012		2011		2010
	(In thousands)
Drilling and other property and equipment, net:
United States(1)	$	444,984	$	283,049	$	638,529
International:
South America		1,827,247		1,979,303		2,290,412
Australia/Asia/Middle East (2)		1,474,999		1,212,461		417,121
Europe/Africa/Mediterranean		799,194		852,300		897,998
Mexico		318,548		340,356		39,732
		4,419,988		4,384,420		3,645,263
Total	$	4,864,972	$	4,667,469	$	4,283,792

(1) Long-lived tangible assets in the United States region as of December 31, 2012 and 2011 include $167.4 million and $14.6 million, respectively, in construction work-in-progress for the Ocean Onyx under construction in Brownsville, Texas.

(2) Long-lived tangible assets in the Australia/Asia/Middle East region as of December 31, 2012 and 2011 include $823.6 million and $490.2 million, respectively, in construction work-in-progress for our drillships under construction in South Korea and the Ocean Apex under construction in Singapore.

The following table presents the countries in which material concentrations of our long-lived tangible assets were located as of December 31, 2012, 2011 and 2010:

	December 31,
	2012			2011			2010
Brazil		37.3	%		41.9	%		52.7%
South Korea (1)		15.2	%		10.5	%		--
United States (2)		9.1	%		6.1	%		14.9%
Republic of Congo		7.4	%		--			9.3%
Indonesia		6.8	%		3.4	%		3.8%
Mexico		6.5	%		7.3	%		0.9%
Egypt		4.7	%		5.5	%		6.3%
Vietnam		1.4	%		6.6	%		0.6%
Angola		--			8.0	%		1.7%

(1) Assets in South Korea, as of December 31, 2012 and 2011, include $741.1 million and $490.2 million, respectively, in construction work-in-progress for our drillships under construction.

(2) Assets in the United States, as of December 31, 2012 and 2011, include $167.4 million and $14.6 million, respectively, in construction work-in-progress for the Ocean Onyx under construction in Brownsville, Texas.

As of December 31, 2012, 2011 and 2010, no other countries had more than a 5% concentration of our long-lived tangible assets.

Major Customers

Our customer base includes major and independent oil and gas companies and government-owned oil companies. Revenues from our major customers for the years ended December 31, 2012, 2011 and 2010 that contributed more than 10% of our total revenues are as follows:

	Year Ended December 31,
Customer	2012			2011			2010
Petróleo Brasileiro S.A.		33.3	%		35.0	%		23.7	%
OGX Petróleo e Gás Ltda.		12.5	%		14.1	%		14.1	%